2007 / 2008 Annual Report - Eastern Cape Development Corporation

More documents

Recommendations

Info

EASTERN CAPE DEVELOPMENT CORPORATION 2007/08NOTES TO THECONSOLIDATED ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 200835 Categories and fair value of financial instruments (CONTINUED)35.3.3 Unlisted shares carried at costIn accordance with the accounting policy on available-for-sale financial assets, certain unlisted shares are carried atcost as their fair values could not be reliably determined, due to a lack of an active market for these instruments.35.3.4 Held to maturity investments, loans advanced and interest bearing borrowingsThe fair values of these financial instruments are determined based on discounted cash flow techniques, taking accountof market related discount rates appropriate to the instrument and economic conditions current at the balance sheetdate. At this date, the fair value of the financial instruments approximated their carrying values.36 New standards, amendments and interpretationsStandards, amendments and interpretations effective in 2008IFRS 7, ‘Financial instruments: Disclosures’, and the complementary amendment to IAS 1, ‘Presentation of financialstatements – Capital disclosures’, introduces new disclosures relating to financial instruments and does not have anyimpact on the classification and valuation of the group’s financial instruments, or the disclosures relating to taxationand trade and other payables.IFRIC 8, ‘Scope of IFRS 2’, requires consideration of transactions involving the issuance of equity instruments, wherethe identifiable consideration received is less than the fair value of the equity instruments issued in order to establishwhether or not they fall within the scope of IFRS 2. This standard does not have any impact on the group’s financialstatements.IFRIC 10, ‘Interim financial reporting and impairment’, prohibits the impairment losses recognised in an interim periodon goodwill and investments in equity instruments and in financial assets carried at cost to be reversed at a subsequentbalance sheet date. This standard does not have any impact on the group’s financial statements.Standards, amendments and interpretations effective in 2008 but not relevant to the groupThe following standards, amendments and interpretations to published standards are mandatory for accountingperiods beginning on or after 1 April 2007 but they are not relevant to the group’s operations:• IFRS 4, ‘Insurance contracts’;• IFRIC 7, ‘Applying the restatement approach under IAS 29, Financial reporting in hyper-inflationary economies’; and• IFRIC 9, ‘Re-assessment of embedded derivatives’.• IFRIC 11 IFRS 2 Group and Treasury Share TransactionsNew standards, amendments and interpretations effective in future periodsNew standardsThe following standards, mandatory for the group’s accounting periods commencing on or after 1 April 2008, have notbeen early-adopted by the group:IFRS 8 Operating SegmentsIFRS 8 requires an entity to adopt a management approach to reporting the financial performance of its operatingsegments. Generally, the information to be reported would be what management is currently using internally forevaluating segment performance and deciding how to allocate resources to operating segments. The application of theIFRS is not expected to change the disclosure and measurement basis applied to segment reporting by the group and isnot expected to have a significant impact on the group. The group will apply IFRS 8 from its effective date, which is forannual periods commencing on or after 1 January 2009.104
EASTERN CAPE DEVELOPMENT CORPORATION 2007/0836 New standards, amendments and interpretations (CONTINUED)Revised standardsThe following revisions to International Accounting Standards have not been early-adopted by the group:IFRS 3 Business Combinations: Comprehensive revision on applying the acquisition method and consequential amendments to IAS 27Consolidated and Separate Financial Statements, IAS 28 Investments in Associates and IAS 31 Interest in Joint VenturesThe revised IFRS 3 retains the basic requirements of IFRS 3 (2004) to apply acquisition accounting for all businesscombinations within the scope of the IFRS 3, to identify the acquirer and to determine the acquisition date for everybusiness combination. The most significant change is a move from a purchase price allocation approach to a fair-valuemeasurement principle. The revision applies to business combinations for which the acquisition date is on or after thebeginning of the first annual reporting period beginning on or after 1 July 2009.The revision is applicable prospectively and will not affect past business combinations.IAS 1 Presentation of Financial Statements: Comprehensive revision including requiring a statement of comprehensive incomeThe changes made to IAS 1 require information in financial statements to be aggregated on the basis of sharedcharacteristics and introduce a statement of comprehensive income. The revision includes changes in titles of financialstatements to reflect their functions more clearly. The revised standard will affect the disclosures in the annual report.The revision is effective for annual periods commencing on or after 1 January 2009. The group will adopt the revisedstandard on its effective date.IAS 23 Borrowing CostsThe revision removed the option of immediately recognising as an expense borrowing costs that relate to assets thattake a substantial period of time to get ready for use or sale. The revision is effective for annual periods commencing onor after 1 January 2009. The group will adopt the revised standard on its effective date.IFRS 2 Share-based Payment: Amendment relating to vesting conditions and cancellationUnder IFRS 2, a failure to meet a condition, other than a vesting condition, is treated as a cancellation. IFRS 2 specifiesthe accounting treatment of cancellations by the entity, but does not give guidance on the treatment of cancellations byparties other than the entity. The amendment requires cancellations by parties other than the entity to be accounted forin the same way as cancellations by the entity. The amendment is effective for annual periods commencing on or after 1January 2009. The standard is irrelevant and will have no effect to the group.IAS 1 Presentation of Financial Statements: Amendment relating to disclosure of puttable instruments and obligations arising onliquidationThe amendment requires additional information to be presented on puttable instruments that are presented as equity.The amendment will not affect the group, as the group does not have puttable instruments that are presented withinequity. The amendment is effective for annual periods beginning on or after 1 January 2009.The group will apply theamendment from its effective date.InterpretationsThe following interpretations of existing standards are not yet effective and have not been early-adopted by the group:IFRIC 12 Service Concession ArrangementsThe interpretation clarifies the application of existing IFRSs by concession operators for obligations under concessionarrangements and rights received in service concession arrangements. The group will apply the requirements of theinterpretation from its effective date, which is for annual periods commencing on or after 1 January 2008.The group is not party to concession arrangements. As such, IFRIC 12 is not expected to have any impact on the group.105
Page 1 and 2:
EASTERN CAPE DEVELOPMENT CORPORATIO
Page 3:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
HUMAN RESOURCES MANAGEMENT2007/08 A
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25:
Page 28 and 29:
PHOTOGRAPH: Alicedale, home to the
Page 30 and 31:
Page 33 and 34:
INVESTMENT PROMOTION2007/08 ANNUAL
Page 35 and 36:
Page 37:
Page 40 and 41:
PHOTOGRAPH: The Mercedes Benz South
Page 42 and 43:
Page 44 and 45:
PHOTOGRAPH: Citrus, chicory, vegeta
Page 46 and 47:
Page 49 and 50:
DEVELOPMENT SUPPORT SERVICES2007/08
Page 51 and 52:
Page 53:
Page 56 and 57: PHOTOGRAPH: The Automotive Supplier
Page 58 and 59: EASTERN CAPE DEVELOPMENT CORPORATIO
Page 60 and 61: PHOTOGRAPH: The deepwater port of N
Page 114: www.ecdc.co.za
show all

2007 / 2008 Annual Report - Eastern Cape Development Corporation

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?